Page 18 - Craftcil July 2017
P. 18

impex


              (Amendment) Act 2017 No 18 of 2017, with effect from July 1, 2017. RAs are directed not to issue ARO except for
              Schedule-4 items as stated above.
            • Imports/exports under the replenishment schemes for the Gems and Jewellery sector covered under chapter 4 of
              FTP and HBP shall be subject to Customs Notification issued/ to be issued in this regard.

            Chapter 5
            • Importers would need to pay IGST and take input tax credit as applicable under GST rules.

            • ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
            Chapter 6
            • Imports by EOU/ EHTP/STP/BTP:
              EOU are allowed duty free Imports of goods for their authorised operations. In GST regime, the import of goods
              covered under GST would be exempted from the whole of the duty of customs specified under the First Schedule
              to the Customs Tariff Act, 1975 (BCD) enabled by Notification no. 52/2003 - Cus. But such goods would attract
              integrated tax and compensation cess leviable under sub- section (7) and (9) of the said Act. The taxes so paid on
              imports will be neutralized by ITC.

              The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole
              of the duty of customs specified under the First Schedule to the Customs Tariff Act, 1975 (BCD) and also from the
              additional duty leviable under sub- sections (1),(3) and (5) of section (3) of the said Act (CVD & SAD) enabled by
              Notification no. 52/2003 - Cus.

            • Domestic procurements:
              For the indigenous procurement of goods covered under GST, the EOU will not get ab-initio exemptions. Such
              supplies would be on payment of CGST/SGST/UTGST/IGST. The taxes so paid will be neutralized by ITC. For the
              indigenous procurement of goods covered under Fourth Schedule, the EOU will continue to get ab-initio
              exemptions from central excise duty.
            • DTA clearances of finished goods covered under GST:
              EOUs would be required to pay only CGST & SGST or IGST, as the case may be, besides paying back of whole of the
              duty of customs specified under the First Schedule to the Customs Tariff Act, 1975 (BCD) exemptions, if availed, on
              inputs used in manufacture of such finished goods.
              The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act, 1944, the EOUs
              would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to
              Section 3(1) of the Central Excise Act, the effective rate of such duties being covered by Notification No. 23/2003-CE.
            • Inter unit transfer/supply for EOU to other EOUs:
              Applicable GST would be payable on the transfer/supply of goods from one unit of EOU / EHTP / STP / BTP to another.
            Chapter 7:
            • Supplies made prior to the date of operationalisation of GST:
              The supplies made to different deemed exports categories till the date prior to the date of operationalization of
              GST, the benefits would be available as per the provisions existed till the date of operationalisation of GST.
            • Supplies after the date of operationalisation of GST:

              • Advance Authorisation benefits under Chapter 4 shall be available for supplies under Chapter-7. The duty
               exemption benefits under AA would be limited to exemption from basic custom duty only. The exemption for
               items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
               Act, 1944 provided the items are eligible under the Advance Authorisation.


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